Friday 29 Mar 2024
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KUALA LUMPUR (July 6): Kumpulan Kitacon Bhd is offering up to 138.59 million shares in an initial public offering (IPO) as it seeks to list on Bursa Malaysia’s Main Market, according to its prospectus exposure published on the Securities Commission Malaysia's website on Tuesday (July 5).

The 138.59 million shares comprise 76.09 million new shares and an offer for sale of 160 million existing shares. 

The issue price as well as the opening and closing dates of the IPO have yet to be fixed.

Of the 138.59 million new shares, a total of 62.5 million shares will be allocated to bumiputera investors approved by the Ministry of Industry and Trade (MITI), Malaysian institutional and selected investors (other than bumiputera investors approved by the MITI), and foreign institutional and selected investors.

The offer shares of 8.59 million will be allocated to directors of Kitacon, eligible employees of the group and its subsidiaries, persons who have contributed to the success of the group and the Malaysian public.

Based on the prospectus exposure, Kitacon is an investment holding company, while its proposed subsidiary is principally involved in the provision of construction services. 

“We have been operating in the building construction industry for approximately 32 years since the commencement of operations of our subsidiary, Kitacon Sdn Bhd, in 1990, where we started with various small-scale construction and subcontracting works, including renovations and construction of an industrial building. 

“We have been registered with the CIDB (Construction Industry Development Board) as a contractor since 1996, and subsequently we received the certificate of registration from the CIDB in 1997 as a G7 contractor. 

“Since 1990, we have completed a range of construction projects, including residential, commercial, industrial, purpose-built and institutional buildings,” it said. 

It also highlighted that it had established long-term business relationships with its customers, including Sime Darby Property Group, S P Setia Group and Worldwide Group. 

For financial year 2021, the group reported a net profit of RM41.83 million, up 6.71% from the previous year, while annual revenue declined by 6.97% to RM455.5 million. 

RHB Investment Bank Bhd is the principal adviser, managing underwriter and placement agent for the IPO.

Edited BySurin Murugiah
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